Doreen has the option of borrowing $960 for 1 week at an APR of 350% or
borrowing the $960 for 1 week with a fee of $70. Which is the "better" deal?
A. Borrowing the $960 for 1 week with a fee of $70, since Doreen will
owe less interest this way than with the 350% APR
B. Borrowing the $960 for 1 week with a fee of $70, since Doreen will
owe more interest this way than with the 350% APR
C. Borrowing the $960 for 1 week at an APR of 350%, since Doreen
will owe less interest this way than with the fee of $70
O D. Borrowing the $960 for 1 week at an APR of 350%, since Doreen
will owe more interest this way than with the fee of $70
SUBMIT
PREVIOUS

Borrowing the $960 for 1 week at an APR of 350% is a better deal, since Doreen will owe less interest this way than with the fee of $70.

Given the following data:

Principal = $960

Time = 1 week = 7 days

Annual percentage rate (APR) = 350%

Fee = $70

Conversion:

365 days = 1 year

7 days = X year

Cross-multiplying, we have:

[tex]365X=7\\\\X=\frac{7}{365}[/tex]

X = 0.0192 years.

To determine which of the borrowing option is a better deal:

In order to compare the two deals, we would calculate the interest on the first borrowing option.

Mathematically, simple interest is given by the formula:

[tex]S.I = \frac{PRT}{100}\\\\S.I = \frac{960 \times 350 \times 0.0192 }{100}\\\\S.I = 96 \times 35 \times 0.0192[/tex]

S.I = $64.512

Therefore, borrowing the $960 for 1 week at an APR of 350% is a better deal, since Doreen will owe less interest this way than with the fee of $70.

Read more on simple interest here: https://brainly.com/question/16992474